Alan Mulally: Corporate Welfare Kinghttp://www.businessinsider.com/2008/12/alan-mulally-corporate-welfare-king/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Tue, 31 Mar 2015 18:29:01 -0400John Carneyhttp://www.businessinsider.com/c/89b9b914d04e3a49a4fb4100mickeycSat, 06 Dec 2008 05:07:12 -0500http://www.businessinsider.com/c/89b9b914d04e3a49a4fb4100
Scott,
On behalf of the US taxpayer I'd like make something clear. You make bad cars at a loss.
We are not as stupid as we look.
The only direction Ford is pointing in is off the nearest cliff Thelma and Louise style.
Please take your nonsense elsewhere.http://www.businessinsider.com/c/f17a6c793c7d3949828cc000KevinFri, 05 Dec 2008 14:13:00 -0500http://www.businessinsider.com/c/f17a6c793c7d3949828cc000
The United States federal spending is expected to exceed $3 trillion next year. $1/2 trillion is for "other discretionary" items. Why don't we SIMPLY reduce the "other discretionary" items by $50 billion? Then the auto package would cost the tax payers zero? What's in the !#@$% "other discretionary" $1/2 trillion?!? Why is NO ONE is talking about that $1/2 trillion?!? The potential cost of the auto package is immaterial compared to most of the murky spending done by the US Government, isn't it?http://www.businessinsider.com/c/a1b9b914847b39499d328e00DudeFri, 05 Dec 2008 14:05:41 -0500http://www.businessinsider.com/c/a1b9b914847b39499d328e00
Get rid of Ford, GM, and Chrysler period. We don't want to use junk and people around the world do not want JUNK.http://www.businessinsider.com/c/a1b9b9147a733949412a8e00McCain would've started WW3Fri, 05 Dec 2008 13:31:23 -0500http://www.businessinsider.com/c/a1b9b9147a733949412a8e00
Oh yeah, and regardless whether Ford is really only asking for a line of credit, why is it that Hank can't make a similar "gov't back-stopped commercial paper" printing facility available to all three companies, like he just did with his cronies at GS, MS, and soon likely others??? These guys are LAUGHING about what going on right now, they can't believe the amount of inquisition visited upon the autos over what amounts to chump change in the larger scheme of things.
It's as if the unresolved, and now largely unexpressable anger over the great 2008 bank heist, I mean bailout, is being projected onto the autos. The only "consolation" is that when this goes the way these fools are pushing (Chapter 11 devolving into Chapter 7), the blow-back will screw them royally as well.
Not to mention the consumers who will wake up to sky-rocketing used-car prices, likely higher import prices/pricing power concentration, sky-rocketing replacement parts costs, etc.http://www.businessinsider.com/c/a1b9b91498703949cf268e00McCain would've started WW3Fri, 05 Dec 2008 13:19:05 -0500http://www.businessinsider.com/c/a1b9b91498703949cf268e00
John,
what are the actual amounts we are talking about here? How much did Mulally actually get for Boeing?
Unless it is in the tens of Billions, I would say that it is absolutely ridiculous to make a big deal about him or any of the other autos, when AIG et al. had tens of Billions extra stuffed into them with both of Hank's hands, likely to shield Goldman from the exposure to this black hole.
Plus some of that money may well have been used to insulate FOREIGN banks from losses in AIG. Where is the outrage???? Where is the inquisition there????
I don't hear you raising bloody murder anymore about any of that, as if it's already escaped the public's gnat-like memory. But you guys are the journalists (of sorts I guess), so it would fall to you to remind them of these crimes that have already transpired. It's as if once the deed was done, everybody just checked it off in their collective minds and went on to the next thing.
By these measures, the entire current debate is unbelievable. Supposedly we are really arguing whether to let the entire U.S. auto industry fail over less than $50B, when the ripple effects of this will likely make Lehman look like a cakewalk.
And this bias is so persistent, so deep-seated, and so casual: I just heard some dodo-head anchor on CNBC argue something about the "different class of issue" with the autos. As if the bank bailout has not been about phenomenal failure, stupidity, and graft. By comparison to the criminally negligent to outright fraudulent people at Citi, AIG, MS, GS, Moody's, etc., the auto guys are downright geniuses in my book.
I guess their only crime was that they were trying to manufacture real products with real world utility. Silly puppies, ain't you heard that all the money is in making casino-like bets with derivative "sandcastle-in-the-sky" structures that no one truly understood or understands?
This is class warfare at its finest. "Let them eat cake" was an understatement compared to what is currently coming from these financial cheer-leaders.
OH, AND ONE MORE THING: The current drop in oil prices appears to harden the suspicion that as much as 50% in the price run-up was purely speculative (I'll let the drop from 75 to 40 count as true demand destruction, but most of the rest was obviously a speculative bubble judging from the sheer speed of the pull-back from 120ish), i.e. more crimes visited upon us by the bankers, etc. and in turn upon the autos.
See at below $2/gal. Detroit would have likely sold quite a few more of their vehicles in 2008. No one even talks about this double-whammy perpetrated upon them by Hank's good buddies.http://www.businessinsider.com/c/a1b9b914586e39492e248e00KevinFri, 05 Dec 2008 13:09:29 -0500http://www.businessinsider.com/c/a1b9b914586e39492e248e00
"Welfare King" seems a tad hyperbolic -- doesn't mesh too well with Alan Mulally's Wikipedia article. Perhaps, you'd better scoot over there and change the wiki to make it congrue more closely with your headline.http://www.businessinsider.com/c/a1b9b914766a3949511f8e00Henry BlodgetFri, 05 Dec 2008 12:52:54 -0500http://www.businessinsider.com/c/a1b9b914766a3949511f8e00
Scott,
Thanks for the comment. If Ford really doesn't view this as a bailout, I think it's making a big mistake going to the same hearings as GM and Chrysler, for whom it is unquestionably a bailout (GM will run out of cash in 3 weeks without a deal).
As I've listened to Ford say it doesn't need any money through 2009, I have often wondered what is is doing sitting on the same bench with GM, which needs cash today or dies. I'm glad that Ford is only asking for a line of credit, but I think you can forgive America for lumping all three car-makers together, given that they're all hitting up Washington as a team.http://www.businessinsider.com/c/f17a6c79426739496173bf00 Larry SolieFri, 05 Dec 2008 12:39:15 -0500http://www.businessinsider.com/c/f17a6c79426739496173bf00
What John Carney is talking about is not correct at any level, Did he even look at what Ford was asking for? Most likely Ford will not even borrow any money. What Alan said was we need a line of credit in case the economy doesn't turn around soon enough.
I wish Congress would act on solving problems instead of putting on a show that serves no purpose. The car companies need money and our elected representatives want to talk about airplanes instead. All car companies in the whole word are having financial problems.
In America the UAW is to a very large degree responsible for US automakers being in worse shape the other countries.
All the cards are on the table. Now its time to end the theatrical show and do something. http://www.businessinsider.com/c/f17a6c79da613949386ebf00djFri, 05 Dec 2008 12:16:11 -0500http://www.businessinsider.com/c/f17a6c79da613949386ebf00
Mr Monty , PM harper is waiting for you to visit,his door is open! Get your sorry a$$ up there now!!!http://www.businessinsider.com/c/f17a6c79aa5f3949d76bbf00Scott MontyFri, 05 Dec 2008 12:06:50 -0500http://www.businessinsider.com/c/f17a6c79aa5f3949d76bbf00
On behalf of Ford, I'd like to make something clear. This is not a handout nor is it a bailout. We are asking for access to a line of credit, *should we need it* in the event that the economy does not turn around.
If you read through our plan at http://thefordstory.com, you'll see that Alan has already pointed Ford in the right direction.
Scott Monty
Global Digital Communications
Ford Motor Company
http://www.businessinsider.com/c/a1b9b91436593949ea0c8e00Joe WeisenthalFri, 05 Dec 2008 11:39:19 -0500http://www.businessinsider.com/c/a1b9b91436593949ea0c8e00
Jeez John, how many brother/writers DO YOU HAVE?